Show this article to your marketing manager or decision-maker, if you are getting a new logo designed.
Logo design prices is something that confuses many, and it’s pretty clear why. From free logo builder websites to reading articles where a company has spent $250,000+ (what?!) for a logo, it’s really unclear why there is such a huge gap. And, is it really true that you get what you pay for? It might seem bizarre, but there’s a reason why there is such a huge range—they’re not all the same product.
Talking about the cost of logos can be tricky, as it’s easy for feelings to get hurt, depending on who is reading this. We are not here to make anyone feel bad for their budget choices or push them to splurge on expensive logos. We are also not trying to undermine any freelancers or DYI businesses. Our goal is to help you understand exactly what you’re getting for your money. We want to make sure you have clear expectations based on your budget so you won’t be let down if the results aren’t what you hoped for. Remember, logos come at different price points for valid reasons.
To break it down without getting too complex, let’s look at logo pricing in three broad categories: low-end ($150-$990), mid-range ($3,000-$9,990), and high-end ($10,000+). And more importantly, what else does that include, aside from just the logo, and what was the process behind it.
One of the main reasons – it’s the process.
It’s tempting to cut corners and save costs, especially if you are a new startups or a small business. Opting for a cheaper logo design might seem like a minor decision, but it can lead to substantial financial losses and missed opportunities down the road. The adage “Get it right before it’s too late” has never been more applicable than here.
The temptation of choosing a cheap logo design
Imagine this scenario: a new company decides to save money on branding by purchasing a logo design for say $250. Or even grab one for free, there are many websites that offer it these days. At first glance, it seems like a bargain. However, the real costs begin to unfold as the business progresses. The company invests $2,000—5,000 in printing business cards, flyers, and letterheads, each bearing the logo. Another $5,000—10,000 is allocated to signage, uniforms and car stickers, all echoing the same design. As the brand launches into the digital world, thousands are spent on Facebook and Google ads to build brand awareness.
The logo was cheap, that’s true. You had tight budgets and most of it went to the rest of your marketing. Makes sense.
The hidden costs of a cheap investment
After a year of extensive marketing and branding efforts, the shortcomings of the cheap logo become painfully evident. Perhaps the logo doesn’t scale well on social media platforms, looking pixelated or awkward against competitors’ more polished logos. Maybe it fails to make an impact on signage, blending into the background rather than standing out to potential customers. Often, a low-cost logo might be too generic, failing to create the unique brand recognition needed in a competitive market.
The company now faces a harsh reality: the logo does not resonate as would have hoped with their audience nor does it communicate the brand’s values effectively. As a result, despite the initial what seemed like savings on the logo design, the business has spent tens of thousands of dollars promoting a brand identity that doesn’t work. Sounds familiar?
The cost of a redesign
Recognising their mistake, the company decides it’s time for a redesign. However, the cost of correcting this mistake isn’t just financial—it includes the time spent building brand recognition that will now need to be somewhat reset. A new logo means updating all previously created materials, from digital ads to physical signage, all of which involves significant costs and logistical challenges.
The true cost of deciding to save on a logo design extends beyond immediate financial implications. There is a loss of consumer trust you’ve tried to build and brand equity; every time the logo fails to connect with the audience, it chips away at the brand’s credibility. The business could have engaged more customers and created a stronger market position if the original logo had been more effective.
The smarter approach to logo design
To avoid these pitfalls, businesses should view logo design not as an expense but as a long-term investment. Making a decision to increase the budget and hire a professional designer or agency might cost more upfront, but compared to the cumulative costs of a failed logo, this investment is justified. A well-designed logo will be versatile across various platforms, resonate with the target audience, and stand the test of time, meaning you won’t need to redesign it a few years down the line.
However, the logo on itself is just that – a logo. You are now stuck with a new, more expensive logo, and you are about to spend more money on making this one work across all of your marketing channels. So, what was the point of this all, if this new logo seems to fit well in some areas, but not others. It all comes back to the process and identity. Where and how your logo is used makes all the difference.
Going beyond just creating a logo, developing a full corporate identity and branding strategy offers significant advantages. This helpts to ensure that all aspects of your business—from your website and marketing materials to your office environment and customer communications—convey a consistent and compelling message. By fully integrating the visual and communicative elements of your brand, you create a deeper, more memorable engagement with your audience, and it also makes it clearer for you and your business how to use the logo more effectively.
The low-end ($150-$990)
In most cases, it’s by someone who is not a full time designer, or someone that creates 10-20 logos a week, by simply pushing out a lot of work and often offering a lot of options. Offshore pricing can also play a big factor here, but if it’s on the lower end of scale, same applies. The other option is they might invest significant effort into a project, but simply receive less than what their work is worth. The process in most cases is pretty basic, often based on templates or even reusing other logos they designed and altering them for the client.
It raises questions about the quality and the amount of time they can dedicate to each project. Generally, such low pricing indicates that the designer might be handling multiple projects simultaneously, forcing them to rush and possibly cut corners. Crucial steps like design research, which helps tailor a logo to stand out from competitors, often get compromised. Instead, these designers might rely solely on the client’s input, quickly produce several variations, and make refinements on one selected design. While this streamlined process keeps costs down, it might not deliver a logo that truly captures and distinguishes your brand’s identity in the long run.
Mid-range ($3,000-$9,990)
If you’re willing to invest more, you can expect a solid design process, especially if you’re working with an experienced designer who follows professional standards. The process usually includes an array of steps starting with in-depth research into the client’s business and their competition. The designer sets the direction using tools like design briefs and mood boards, then moves on to generate multiple design concepts. From there, they refine the most promising ideas, select the best one that aligns with the client’s values and brand message, and present this proposal, often showing how the logo would look in everyday use.
The design process doesn’t stop at the presentation; it often includes revisions based on client feedback, preparation of various colour and composition variations, and the creation of detailed branding guidelines. This mid-end design process is far more involved than the simpler, cheaper options and typically requires between 30 to 50 hours of work, spreading over two to six weeks. This timeframe can vary depending on the designer’s workload and whether additional graphic elements are included alongside the logo. This level of detail ensures a more tailored and unique result that truly represents the client’s brand. If you do a quick calculator of the hours involved x the hourly rate, you’ll have some understanding of pricing. This type of work is rarely calculated by time, it’s pretty hard to put a time on creativity.
And the other big factor here – are the inclusions. Remember, you are not just designing a stand-alone logo, are you building (or improving) your business image and it has to work consistently across many aspects. A typical logo design package includes high and low-resolution logo files, including vector formats suitable for scaling to any size. It also features detailed brand guidelines that outline colour palettes, typography, logo placement, and usage rules to ensure brand consistency across all mediums. You are expected to get digital assets such as email signatures, branded social media icons, and templates, along with a favicon for web use. Marketing materials like mockups and essential stationery items including business cards, letterheads, and notepads form part of the corporate identity suite. All really comes down to your specific business needs. You may not need any of that, so you’ll spend less. Or you may need a lot more than that, in which case you may want to consider a full branding package instead.
The high-end ($10,000+)
We mentioned at the start, that some companies spend $250,000+ for their logo. But it’s clearly not just the logo that they pay for, it’s the whole messaging, branding and design that comes with it. And the process can last months or even years, where depending on the size of the company, there could be ongoing assets that need redesign or tweaking, to fit within the overall brand. The process is markedly more collaborative and resource-intensive compared to lower-tier projects.
This typically involves a team of skilled designers and marketers who pool their expertise to ensure a high-quality outcome. The collaborative effort leads to a more thorough research phase, a diverse range of creative ideas, and often, direct participation from the client or focus groups. This can also include business naming and crafting taglines as part of a broader branding strategy. The process is lengthy, and is there to accommodate the depth of work required, especially for large companies where the stakes—and potential costs of getting it wrong—are high.
With higher investments, the deliverables become more extensive. A basic logo design might yield just a single logo, but as the budget increases, so does the complexity and variety of the outputs. Mid-range budgets provide multiple logo variants, a brand style guide, and potentially additional graphics and a brand strategy depending on the scope of the project and the payment. This tiered approach to logo design underscores the variability in pricing and deliverables across different budget levels, emphasising that higher costs are justified by the depth and breadth of the creative and strategic services provided.
A few final words of wisdom from us: Get it right before it’s too late!
Take your time deciding on a logo design project. If your current budget doesn’t cover what you are hoping to achieve – you are better off waiting until it does, or go very low-key and really keep costs at a minimum. But remember what we mentioned earlier, the cost of a redesign is a lot higher than just the logo. All the effort you put in your Instagram page today is what people will recognise you by. Changing this may take more than just a logo.
If you love our work — let’s talk. We offer flexible options and payment terms, transparent expectations and more importantly, we have a team of specialists that really know their sh*t.
If you have any questions about the logo design process or need further clarification, feel free to reach out to us directly.
For those considering different avenues for logo design, here are some typical avenues and associated costs:
- DIY: If you’re designing the logo yourself, the cost can be minimal, often just the price of the software used, ranging from $0 to $50.
- Logo Templates or Logo Makers: These tools offer a quick solution and can cost between $20 and $200. They provide a variety of templates which can save time but might lack originality.
- Crowdsourcing and Design Contests: These can offer a broader range of options and creativity for your logo, typically costing between $130 and $700. Often the logos are “recycled” or pushed out in large numbers with minimal thought process behind it.
- Freelance Designers: Hiring a freelancer can offer a balance between cost and customisation, with prices ranging from $300 to over $2000 depending on the designer’s expertise. There are some really good freelancers out there, but you may need to do some research first.
- Design Agencies: This is usually the most expensive option, but comes with the most support, expertise and flexibility. That being said, just like with freelancers, there are good, bad and ugly. Do your research, meet with them, a strong porfolio and a personal connection goes a long way.